Gelonghui, April 26, 丨 Shenzhen Expressway Co., Ltd. (00548.HK) announced that the company held the 43rd meeting of the 9th board of directors on April 26, 2024 to review and approve matters relating to capital increases for wholly-owned subsidiaries to repay their foreign currency debts. In order to optimize the Group's overall debt structure, reduce financing costs, enhance the capital strength of subsidiaries, and prevent the risk of exchange rate fluctuations, the Company increased its capital to Meihua by no more than HK$10.479 billion (or equivalent currency amount), and then Meihua increased its wholly-owned subsidiary Shenzhen Investment Infrastructure by no more than HK$7.661 billion (or equivalent currency amount) (“this capital increase”).
The capital increase received by Shenzhen Investment Control Infrastructure will all be used to repay the principal and interest of shareholder loans payable to Meihua. The capital increase received by Meihua will mainly be used to repay existing foreign currency bank loans after paying the capital increase to Shenzhen Investment and Infrastructure and recovering the principal and interest of shareholders' loans to Shenzhen Investment Control Infrastructure.